Tax Codes

PayrollGuide > Payroll > Setting Up the Payroll Module > Working with Payroll Codes > Tax Codes

Tax Codes

Use the PR Tax Codes window to define federal, state, and local taxes. Cougar Mountain provides Tax Codes and updates for you, but you can create new Codes if you need to.

To set up Tax Codes:

1 In Payroll, select Options > Tax Codes from the left navigation pane. The Tax Codes window will open.

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2 Use the Lookup to select a Tax Code you want to modify. If you want to create a Tax Code that isn’t provided, enter a unique Code of up to six characters and a meaningful description.

3 From the Tax Type drop-down, choose whether this is a federal, state, or local tax.

4 If you are adding a state or local Tax Code and you will report state unemployment through Aatrix, select the state this Tax Code applies to from the State drop-down.

5 On the Tax Table tab, if you are integrated to Accounts Payable, enter the AP Vendor for taxes withheld and payable. If you are not integrated to Accounts Payable, enter the GL Liability Account number.

6 In the Percent and Cutoff fields, enter the applicable percentages and cutoff amounts as documented by the Internal Revenue Service or other applicable agency.

7 For state and local Tax Codes, fill out the Deduction tab with any additional tax information. If you choose an option besides None from the Use Deduct F Method drop-down, you can enter minimum and maximum federal deductions.

8 Click Save to save the Code and close the window.